Kospi Plunges as Fed Chief Warns of Inflation and Rate Hikes

The Korean stock market opened sharply lower on Monday due to hawkish comments from U.S. Federal Reserve Chief Kevin Warsh, leaving open the possibility of further rate hikes.

Warsh's remarks at the annual Jackson Hole symposium in Wyoming last Friday raised concerns about inflation, which led to a decline in stocks across the board.

The benchmark Kospi index opened 2.58% down but later trimmed its losses to trade 163.60 points lower at 6,625.28 as of 9:15 am.

Major tech stocks such as Samsung Electronics and SK hynix fell 2.53% and 2.18%, respectively, while Hyundai Motor declined 0.88%.

However, Posco Holdings rose 0.15% and SK Innovation jumped 5.99% in a rare glimmer of hope for investors.